On January 1, Eastern College received $1,280,000 from its students for the spring semester that it recorded in Unearned Tuition and Fees. The term spans four months beginning on January 2 and the college spreads the revenue evenly over the months of the term. What amount of tuition revenue should the college recognize on February 28? Assume the college prepares monthly financial statements. a. $640,000.b. $1,280,000.c. $880,000.d. $960,000.e. $320,000.

e. $320,000

Explanation:

Calculation to determine amount of tuition revenue should the college recognize on February 28

Using this formula

Tuition revenue =Amount received/Term spans

Let plug in the formula

Tuition revenue=$1,280,000 /4 months

Tuition revenue=$320,000

Therefore amount of tuition revenue should the college recognize on February 28 is $320,000

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